Rajapalayam Mills has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Rajapalayam Mills Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Rajapalayam Mills did not have earnings to cover the interest expense.
Rajapalayam Mills's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.00.
As of today, Rajapalayam Mills's Altman Z-Score is 0.62.
Competitive Comparison of Rajapalayam Mills's Financial Strength
For the Textile Manufacturing subindustry, Rajapalayam Mills's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rajapalayam Mills's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Rajapalayam Mills's Financial Strength distribution charts can be found below:
* The bar in red indicates where Rajapalayam Mills's Financial Strength falls into.
Rajapalayam Mills Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Rajapalayam Mills has a Z-score of 0.62, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.62 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Rajapalayam Mills has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Rajapalayam Mills Financial Strength Related Terms
Thank you for viewing the detailed overview of Rajapalayam Mills's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Rajapalayam Mills Ltd is an India-based company engaged in the manufacture of yarn and fabrics. The operates in segments namely, Textiles and Windmills. The Textiles segment of the company offers ring yarn, compact yarn, Elitwist compact yarn, TFO doubled yarn, gassed yarn, slub, and multicount yarn, model/Tencel yarn, open-end yarn, and organic cotton yarn, and the windmills segment engaged in the generation of power from windmills. The firm generates a majority of its revenue from the textile segment.
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